How to Calculate Recruitment Cost
Posted: Tue Feb 11, 2025 5:29 am
There are a couple of metrics that you can use to measure your company’s recruitment costs. The first metric is cost per-hire and, this data point is found by dividing total recruitment costs by the number of hires made over a period of time (quarterly, annual, etc.). [Download the FREE Cost Per Hire Calculator Here] This metric, however, can be a little muddled when a company hires for both high and low salaried jobs.
Your averaged cost per hire is still a telling metric, but segmenting this cost per-hire data switzerland phone number list by job title or department will show you which jobs or groups of jobs are breaking the bank. This will allow you to anticipate the cost of hiring for specific jobs and give you the chance to reduce these costs. The total cost of recruiting for any position is comprised of a collection of internal and external recruiting costs.
External Costs (job board fees, agency and/or recruiter fees, background checks, etc.) include all spending on external recruiting/candidate sourcing resources during the measured time period.
Internal Costs (portion of salaries paid to any internal recruiting staff during measured period, recruiting/candidate management software, rewards for employee referrals, etc.) include any internal spending on recruiting during the measured time period. Once you have collected all of this cost-data over a quarterly or yearlong period, simply apply this formula to discover your company’s cost per-hire.
Your averaged cost per hire is still a telling metric, but segmenting this cost per-hire data switzerland phone number list by job title or department will show you which jobs or groups of jobs are breaking the bank. This will allow you to anticipate the cost of hiring for specific jobs and give you the chance to reduce these costs. The total cost of recruiting for any position is comprised of a collection of internal and external recruiting costs.
External Costs (job board fees, agency and/or recruiter fees, background checks, etc.) include all spending on external recruiting/candidate sourcing resources during the measured time period.
Internal Costs (portion of salaries paid to any internal recruiting staff during measured period, recruiting/candidate management software, rewards for employee referrals, etc.) include any internal spending on recruiting during the measured time period. Once you have collected all of this cost-data over a quarterly or yearlong period, simply apply this formula to discover your company’s cost per-hire.